India office leasing tops 32 million sq ft in first three quarters of 2018
With sustained interest from occupiers led by technology sector, commercial leasing activity across India has crossed 32 million sq ft, up 7% from a year ago, across India’s top 8 property markets in the first three quarters of 2018.
Office space absorption during the September quarter rose 3% from a year ago and 12% sequentially to 10.9 million sq ft with Mumbai, Bengaluru, Hyderabad and NCR accounting for almost 80% of the leasing activity, said showed data from property consultant CBRE South Asia.
Occupiers from technology sector, with a share of 48% of total leasing, drove office space take-up in the country during the third quarter. Occupiers from engineering and manufacturing sector with 14% share were followed by co-working and business center operators that absorbed 11% of the total leased space.
“India’s economic growth continued on its upward trajectory and real estate services along with financial and professional services sector contributed to this economic surge as it grew from 5% in the previous quarter to 6.5% during the review period. Sectors such as BFSI, engineering & manufacturing, and agile/ co-working/business centers are likely to account for a larger share in leasing activity going forward,” said Anshuman Magazine, Chairman, India and South East Asia, CBRE.
Interestingly, India had witnessed 42 million sq ft office space absorption in 2017, while first nine months of 2017 had seen absorption of 30.1 million sq ft.